Ashok Leyland has submitted its Annual Report for the financial year ended March 31, 2026, marking the fourth consecutive year of growth in revenue and profit. The company delivered revenue of ₹44,007 crores, up 14% year on year, while Profit After Tax grew to ₹3,566 crores, up 8% over FY25. The 77th Annual General Meeting (AGM) is scheduled for Friday, August 14, 2026, at 2.30 p.m. via Video Conferencing (VC) / Other Audio-Visual Means (OAVM).

FY26 Financial Highlights

FY26 was described as a year of record performance, with the company achieving its highest-ever revenues, EBITDA, and profitability. The following table summarises key standalone financial metrics:

*Adjusted for Bonus

The company closed the year with a net cash surplus of ₹5,899 crores, reflecting strong cash generation. Long-term borrowings stood at ₹1,002.04 crores as at March 31, 2026, compared to ₹1,286.11 crores as at March 31, 2025. An exceptional item of ₹308.48 crores was recognised on account of the impact of new Labour Codes notified by the Government of India.

Commercial Vehicle Volumes and Market Performance

Total commercial vehicle volumes reached 2,20,437 units in FY26, the highest in the company's history, surpassing the previous peak of 1,97,366 units set in FY19. The following table captures segment-wise volume performance:

Domestic M&HCV market share stood at 30.8%, while bus segment leadership was retained with a market share of 34.1%. In the LCV segment, VAHAN market share reached an all-time high of 12.7%, an improvement of 80 basis points over FY25. Spare parts revenue reached ₹4,450 crores in FY26, registering 12% growth over FY25. The Power Solutions Business delivered revenues exceeding ₹1,000 crores for the second consecutive year, growing approximately 18.8% year on year. The Defence business grew 20% year on year in FY26.

Electrification, Technology and Sustainability

Switch Mobility India, the company's EV subsidiary, achieved net profitability during FY26 — a milestone described as validating the economics of the business. Key EV metrics are summarised below:

During the fourth quarter, the company broke ground on a greenfield battery pack manufacturing facility at Pillaipakkam near Chennai. The company's Uptime Solution Centre monitors over 1,70,000 connected vehicles, processing close to a terabyte of data every day across more than 2.5 crore kilometres of tracked vehicle operation. Renewable energy utilisation reached 77% in FY26, up from 69% in FY25, with Tamil Nadu plants operating at 91% renewable energy. Since FY19, operational carbon emissions have been reduced by over 61%. The company has planted approximately 7.3 lakh trees cumulatively, sequestering an estimated 8,929 tonnes of CO2 equivalent annually.

Financial Services Subsidiaries

The company's financial services businesses continued to strengthen their contribution to the Group. Key metrics are as follows:

Corporate Actions and AGM

During FY 2025-26, the company issued bonus shares in the ratio of 1:1, allotting 2,93,65,27,276 bonus equity shares on July 17, 2025. The Board declared two interim dividends aggregating ₹3.50 per share — a first interim dividend of ₹1 per share declared on November 12, 2025, and a second interim dividend of ₹2.50 per share declared on May 28, 2026. The paid-up equity share capital as on March 31, 2026 stands at ₹5,87,38,54,552 divided into 5,87,38,54,552 equity shares of ₹1 each.

Key resolutions proposed at the 77th AGM include the re-appointment of Mr. Dheeraj G Hinduja as Executive Chairman for a period of three years from November 26, 2026 to November 25, 2029, with fixed compensation of ₹15.50 crores per annum and annual performance pay of ₹17.50 crores per annum. The appointment of Mr. K M Balaji as Whole-Time Director and Chief Financial Officer for a period of two years from May 28, 2026 to May 27, 2028, with fixed compensation of ₹3.85 crores per annum and annual performance pay of ₹1.65 crores per annum, is also proposed for shareholder approval. The remuneration of Cost Auditors Messers. Geeyes & Co. for FY 2025-26, amounting to ₹9,00,000 plus applicable taxes, is also placed for ratification.

Research and Development

Total R&D expenditure for FY 2025-26 stood at ₹635.22 crores, compared to ₹546.22 crores in FY 2024-25, representing 1.44% of total turnover. Capital R&D expenditure was ₹119.13 crores and revenue R&D expenditure (excluding depreciation) was ₹554.28 crores. Key product launches during the year included the HIPPO tractor and TAURUS tipper with 320 and 360 HP engines, the Garud 15M — described as India's first front engine multi-axle intercity coach — and India's first fuel cell city bus introduced for commercial operations at Leh. Foreign exchange earnings for the year amounted to ₹2,709.57 crores, while foreign exchange outgo was ₹656.50 crores.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE208A01029/5a23bdbb-12c9-4cbe-b788-be0fd561f4b8.pdf

Ashok Leyland Limited has secured a favourable ruling from an Arbitral Tribunal in New Delhi regarding a long-standing dispute with the Delhi Transport Corporation (DTC). The tribunal awarded the company ₹222.65 crore plus interest at 10% per annum, covering the pre-arbitration, pendente lite, and post-award periods until payment. This legal victory resolves claims arising from bus supply contracts established between 2009 and 2011.

Key Outcomes of the Arbitral Award

The ruling addresses the primary claim by Ashok Leyland and a counterclaim raised by the Delhi Transport Corporation. The tribunal also awarded legal costs of ₹2.96 crore to the company. The following table summarises the key details of the arbitral award:

Dispute Background and Resolution

The dispute originated from contracts where Ashok Leyland supplied buses to DTC between 2009 and 2011. Following the raising of certain claims, Ashok Leyland initiated arbitration proceedings in 2013. While the original claim filed by the company was ₹445 crore, the tribunal allowed part of these claims. The tribunal rejected the entire counterclaim of ₹136 crore raised by DTC. Ashok Leyland stated that it is currently reviewing the award contents to ascertain the final amount inclusive of interest and is considering available options regarding the remaining claimed amount that was not awarded.